New Zealand's largest listed company, Fletcher Building, has raised its offer for Australian plumbing and building supplies firm Crane Group.
Fletcher Building already owns about 15% of the firm.
Crane rejected Fletcher Building's first offer, which included a cash component of $3.47 a share, as unfair and unreasonable.
Under the revised offer, which values Crane at $A788 million, Fletcher Building is offering $A3.50 and one its own shares for every Crane share it does not own.
Crane Group is now is recommending its shareholders accept the higher offer.